Bhubaneswar: The joint venture of JSW Group and South Korean steel giant POSCO will set up a mega steel plant in Keonjhar, the home district of Chief Minister Mohan Charan Majhi. On Tuesday, the two conglomerates announced plans in Mumbai to establish an integrated steel plant with a production capacity of 5 million tonnes per annum (MTPA).
A highly placed source stated that the joint venture is keen on setting up the plant in the iron-ore-rich Keonjhar district. The pact between the two steel majors was signed after preliminary rounds of talks between the promoters and a high-level delegation led by the chief minister during his investors’ meet in Mumbai recently.
Two patches of land have already been identified for the proposed project in the district. One patch, around 2,500 acres, is located near Odisha Tea Plantation Ltd (OTPL) at the Taramakant area under Banspal block, while another 1,956 acres is at Patna, which was initially offered to steel major ArcelorMittal.
“The survey of the OTPL land has been completed. One of the two sites will be selected for the proposed steel plant after the visit of a high-level team of senior officials from the joint venture. If things go as planned, an MoU will be signed during the upcoming Utkarsh Odisha: Make-in-Odisha Conclave 2025 in January,” the source said TNIE.
Since the BJP came to power in the state, Majhi has emphasized the importance of balanced industrial growth for transforming the state’s economy. The state government has constituted a dedicated task force, headed by Chief Secretary Manoj Ahuja, to accelerate the pace of industrialization in the state, with specific focus on Keonjhar district. One of the major mineral-producing districts of the state, Keonjhar is still underdeveloped and lacks large-scale industries.
If the project takes off, this could be POSCO’s second attempt in Odisha after nearly two decades and the second joint venture in the country in two years. Its earlier attempt in 2005 to set up a 12 MTPA plant in the state was shelved due to land acquisition hurdles. In 2022, the South Korean steel major signed a $5 billion deal with Adani Group for an integrated steel mill at Mundra in Gujarat.
On the other hand, the Sajjan Jindal-led JSW Group will have a second plant in the state. In February, it laid the foundation stone for its own 13.2 MTPA integrated steel manufacturing complex with an investment of ₹65,000 crore at Paradip.
The state government has already handed over 2,958 acres of land to the company in Jagatsinghpur district, which was originally acquired for the POSCO project. JSW has also signed an MoU for an integrated EV and components manufacturing project in the state with an investment of ₹40,000 crore.
Meanwhile, Industries Minister Sampad Chandra Swain stated that many industries are eager to invest in Odisha following the change in regime. “We are ready to welcome all industries and provide them with all kinds of support and facilities,” he said.
If the project takes off, this could be POSCO’s second attempt in Odisha after nearly two decades, and the second joint venture in the country in two years. Its earlier attempt in 2005 to set up a 12 MTPA plant in the state was shelved after the project faced land acquisition hurdles. In 2022, the South Korean steel major had signed a $5 billion deal with Adani Group for an integrated steel mill at Mundra in Gujarat.
On the other hand, the Sajjan Jindal-led JSW Group will have a second plant in the state. In February, it laid the foundation stone to set up its own 13.2 MTPA integrated steel manufacturing complex with an investment of `65,000 crore at Paradip.
The state government has already handed over 2,958 acre of land to the company in Jagatsinghpur district which was acquired originally for the POSCO project. JSW has also signed an MoU for an integrated EV and components manufacturing project in the state at an investment of `40,000 crore.
Meanwhile, Industries Minister Sampad Chandra Swain said many industries are eager to make investments in Odisha after the change in regime. “We are ready to welcome all the industries and provide them with all kinds of support and facilities,” he said.